OSPE - The Voice - Fall 2020 - 33

INDUSTRY

Prompt Payment
Regime and
Adjudication

By Harp Khukh

T

he Construction Lien Act was significantly updated
If you are providing engineering services that fall under the Act,
and renamed the Construction Act. The changes
you must be aware of these two regimes as they will affect the daywere implemented in two phases. Phase one was
to-day billing and administration of your practice. For services
to fall under the Act, an engineer must have supplied "services
implemented on July 1, 2018 and updated many
of the laws that guide the construction industry.
or materials" for the "improvement" of any land, which includes:
The changes are highlighted in our blog post, which is available
(a) any alteration, addition or capital repair to the land; (b) any
construction, erection or installation on the
online at https://ospe.on.ca/membership/
land, including the installation of industrial,
new-construction-act/.
Phase two was implemented on October
mechanical, electrical or other equipment on
1, 2019 and introduced two new sections,
the land or on any building, structure or works
Under Prompt
Prompt Payment and Adjudication. Under
on the land that is essential to the normal or
Payment, payment
Prompt Payment, payment deadlines are now
intended use of the land, building, structure or
mandated by statute, meaning the Act tells you
works; or (c) the complete or partial demolition
deadlines are now
the timeframe for payment of invoices and how
removal of any building, structure or works
mandated by statute, or
on the land.
invoices are to be disputed. Adjudication is a
non-court-based system to enforce Prompt
meaning the Act tells
Payment and resolve a multitude of other
do the rules apply?
you the timeframe for When
issues that arise on construction projects. The
The new rules will apply if all the following are
goal of these two new regimes is to ensure that
true:
payment of invoices
funds flow in a timely manner and to resolve
he contract or subcontract for the
and how invoices are a) Timprovement
issues on an expediated basis to ensure the
was entered into after October
timely completion of construction projects.
1, 2019;
to be disputed.

Fall 2020 THE VOICE

33


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OSPE - The Voice - Fall 2020

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Table of Contents
OSPE - The Voice - Fall 2020 - Cover1
OSPE - The Voice - Fall 2020 - Cover2
OSPE - The Voice - Fall 2020 - Table of Contents
OSPE - The Voice - Fall 2020 - 4
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